Farallon Resources Ltd.
TSX : FAN

Farallon Resources Ltd.

December 21, 2006 10:09 ET

Farallon Completes $80 Million Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 21, 2006) -

NOT FOR DISTRIBUTION TO US NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Farallon Resources Ltd. ("Farallon" or the "Company") (TSX:FAN) announces that the public equity offering announced on November 21, 2006 closed today, with gross proceeds of $80 million.

The Company's Agents sold 160 million subscription receipts ("Subscription Receipts") at a price of $0.50 per Subscription Receipt. Each Subscription Receipt entitles the holder to acquire one common share (a "Common Share") and one-half of one common share purchase warrant (each whole warrant, a "Warrant") of Farallon, each Warrant allows the holder thereof to acquire one additional common share of Farallon for a period of 24 months, subject to acceleration under certain conditions, for an exercise price at a price of $0.70.

One-quarter ($20 million) of the gross proceeds plus one-half of the Agents' commission (3% of the gross proceeds) and all of the Agents' expenses have been released to the Company and the Agents, respectively, with those Subscription Receipts equal in value to the amount released automatically converting into Common Shares and Warrants. The Agents also received 9.6 million compensation options, half of which will be held in escrow pending the completion of certain release conditions noted in the Company's news release of December 12, 2006.

Proceeds will be used to advance work on the G-9 deposit at the Company's Campo Morado project in Mexico, and for working capital purposes.

Farallon Resources Ltd. is an international exploration and development company, listed on the Toronto Stock Exchange.

Dick Whittington, President and CEO

Forward Looking Information

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future financings, production, reserve potential, exploration drilling, exploitation activities and events or developments that the company expects are forward-looking statements. Although the company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements.

No regulatory authority has either approved or disapproved of the contents of the news release.

Contact Information

  • Farallon Resources Ltd.
    Shawn Wallace
    Investor Services
    (604) 684-6365 or Toll Free: 1-800-667-2114
    (604) 684-8092 (FAX)
    Website: www.farallonresources.com